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if you're a wholesaler or aspiring wholesaler today's video is a game-changer because I'm going to show you how to do a double closing in the escrow where the N cash buyer actually funds both transactions and you don't need to bring any money to closing now if that sounds complicated don't worry it's a really cool technique and I'll simplify it so you know exactly how to do it coming up for a limited time you can get a free copy of Jerry Norton's QuickStart kit with everything you need to flip your first house in 30 days or less download it now at my quick start kit calm if you're new here to this channel I'm Jerry Norton with flipping master calm and this channel is all about ways to help you make money wholesaling and flipping real estate so you can live your dream life be sure to subscribe and turn on the bill notifications so you don't miss new videos known as always let me lay the groundwork and make sure you understand the big picture and then I'm gonna break it down and simplify a fairly advanced wholesaling strategy and give you three tips to start using this technique right away when wholesaling real estate there are three parties involved in the transaction there's a seller will call a there's the wholesaler called B and then there's the cash buyer called C and there are two primary methods to wholesale a property for profit the first is called an assignment now this is where the seller and the wholesaler execute a purchase and sale agreement for let's say a hundred thousand and then the wholesaler assigns his contract to a cash buyer for let's say a hundred and ten thousand now that means the cash buyer takes over your position as the buyer on the contract with the seller and when it's time to close on the transaction there is a single closing between a and C where C brings a hundred and ten thousand dollars to closing of which a hundred thousand is dispersed to the seller and ten thousand is dispersed to you the wholesaler an assignment is a beautiful thing for you as a wholesaler because one it's a single closing two you don't have to bring any funds to closing and three you don't pay any closing fees now if you'd like to go even deeper on the assignment method I'll put a link to a video in the description box below where I show you how to fill out the assignment contract on that video and I also give you a link to my assignment contract for free if you want it but there are a few situations where you cannot do a single closing assignment or where you may choose not to do a single closing assignment in which case you would do a double closing so let me explain a traditional double closing when you would have to do a double closing when you would choose to do a double closing and then I want to show you a really cool technique to double close in escrow and get your cash buyer to fund both closings so keep watching okay so a double closing is structured differently than a single closing assignment there is still a purchase and sale agreement between a and B for let's say a hundred thousand but now instead of B assigning the contract to C B is going to buy the property take title and then resell the property to C and to do that B and C execute a purchase and sale agreement for let's say a hundred and ten thousand now because a is selling to B and then B is selling to see there's going to be two separate closings typically back-to-back for closing one B is the buyer and will need to bring a hundred thousand plus closing fees to closing now the hundred thousand dollar funds can be cash or in the form of hard money called transactional funding which is short-term funding or day funding now then after closing one between a and B closing to happens between B and C and now since B just bought the property and took title B is now the seller and C is the buyer four hundred and ten thousand now the reason why a double closing transaction is less desirable method is because you as the wholesaler incur closing fees as well as transactional funding fees which can add up to thousands of dollars so why would a wholesaler ever do a double closing over an assignment there are two reasons reason number one is the original contract between a and B may have what's called a no assignment clause which prevents you from assigning your contract and would force you to do a double closing now all Bank properties such as re owes and short sales have no assignment clauses now I have a detailed video explaining the no assignment Clause if you'd like to learn more about it I'll put a link to that video in the description box below and you can watch it later reason number two why you would do a double closing over an assignment is voluntary and that's to prevent your cash buyer from seeing your wholesale fee typically with most cash buyers they don't have a problem if your wholesale fee is under let's say 10 or maybe $15,000 but what if your wholesale fee is 20,000 25,000 30,000 or higher the worry many wholesalers have with doing an assignment with the wholesale fee is really big is that the cash buyer will not agree to the deal or have a problem with the wholesaler making too much money now technically it really shouldn't matter as long as the number works for the cash buyer but sometimes it does so by doing a double closing the cash buyer doesn't see how much the wholesaler paid because that happens in closing 1 and isn't disclosed to the cash buyer so he or she doesn't know how much you're making on the deal as a wholesaler you would want the wholesale fee to be big enough to justify doing any double closing instead of an assignment and be okay paying the extra closing fees and transactional funding fees but what if you could do a double closing and not have to bring any money to closing and eliminate pain any transactional funding fees wouldn't that be cool let me show you how to do it following two steps instead of doing closing 1 first between a and B where both parties sign and fund and record and then turn around and do the same thing with closing number 2 between B and C what you do instead is you have all parties close in escrow now what closing and escrow means is it means all parties sign but recording and dispersing funds doesn't happen until later after funds have arrived from the buyer now closing an escrow is very common in real estate transactions let me give an example using a regular real estate transaction between a buyer and a seller let's say transaction is scheduled to close on Thursday and the seller comes in the day before on Wednesday and signs all of the seller docs and then the buyer comes in Thursday morning let's say at 9:00 a.m. and signs all of the buyer docs but the funds from the buyers lender haven't come in yet so since both parties have sign it's technically closed but title can't disperse funds or record until the funds have officially arrived from the lender so then let's say at 2:00 p.m. funds arrived from the lender now title can record and disburse funds that is how a deal is closed in escrow so we're going to instruct the title or closing agent to do both closings in escrow so all parties come in and sign an escrow for both closings 1 and closing 2 and then once title gets the funds from the end cash buyer for closing 2 those funds are then used to fund closing one and pay the seller and the wholesaler so let me use an example to really illustrate this let's say that there is a purchase and sale agreement between a and B for let's say two hundred twenty thousand and then there is a purchase and sale agreement between B and C for two hundred and fifty thousand so there's a thirty thousand dollar spread for the wholesaler on the day of closing both closings are scheduled for the same day and title is instructed to close both transactions in escrow so let's say that the seller comes in and signs at 10 a.m. and is told that funds haven't arrived yet and his check should be ready you know later today and let's say 2 p.m. and to come back then to get his or her money so the seller signs all of the seller docs for closing 1 in escrow at 10:00 a.m. and then leaves then you come in at let's say 11 a.m. and you sign as the buyer for closing one and while you're there you sign as the seller for closing two again in escrow and you don't bring any money for closing one then at 1:00 p.m. the cash buyer comes in and he signs in escrow as the buyer on closing two and he wires $250,000 for the closing now he has no idea what your wholesale fee is because again that's a separate transaction then at 2:00 p.m. the wire for 250,000 hits the title company's account now this is very important all of the parties have signed and the title company has $250,000 title then uses the 250,000 dollars to fund closing one and disperses two hundred and twenty thousand dollars to the seller and thirty thousand dollars to you the wholesaler and then first records closing one between a and B and then records closing - between B and C and you my friend just did a double closing in escrow where you use the cash buyers money to fund both transactions now as the wholesaler you will have some fee still maybe three hundred to five hundred dollars or whatever but you didn't have to worry about funding two hundred twenty thousand to the seller for closing one and didn't have to worry about paying any transactional funding fees and you hid your wholesale fee from your cash buyer so he had no idea you made approximately thirty thousand dollars now if you got it and you think that's genius leave a comment right now and say Jerry I get it that's genius now let me share with you three important tips so that you can successfully pull this off first of all you need an investor friendly title company who's willing to close in escrow and use funds from closing to to fund closing one not all title escrow or attorney closing companies will do it this is really really important the wrong title company will kill your deal I did an entire video about how to choose and find the best title company for wholesalers I'll put a link to that video in the description box below and you can watch it later so once you've identified your wholesaler friendly closing company make sure to put right in your contract with the seller and also the contract with your buyer that they agree to close with your specific title escrow or attorney company it's really simple just add the following clause seller or buyer agrees to use the closing services of then fill in the blank of your wholesaler friendly title company tip number two is to make sure the end buyer is funding with cash a double closing and in escrow where the money from the end buyer funds the original seller will only work if your end buyer is funding with cash if you were to try and do this with a retail buyer using traditional bank financing the lender would require that your season on title or in other words you already own the property and are already on title in fact FHA financing requires that you're on title for 90 days before you can resell the property it's their anti flipping rule but we'll save that for another video the point is make sure the buyer is funding with cash or if he or she is using unconventional financing like private money or hard money that the buyers lender doesn't have an shuh with what you're doing now tip number three is to make sure your cash buyer is a hundred percent committed to the deal by requiring a substantial non-refundable earnest money deposit this tip actually applies to any method of wholesaling you do not want your cash buyer to flake out and no-show on the day of closing now I do two things to make sure that doesn't happen one I require a minimum twenty five hundred dollar non-refundable deposit at the time of executing the contract and preferably even more say five thousand up to ten thousand the bigger the earnest money the more security you have that your cash buyer will perform on the day of closing the second thing to ensure your cash buyer is 100% committed to the deal is to add a release of earnest money Claus in the event the cash buyer defaults here's the exact wording to use in your contract buyer shall deposit fill-in-the-blank non-refundable deposit with designated escrow herein if buyer fails to fund and closed on the specified date herein buyer agrees that this serves as instruction to escrow to release said deposit as damages to you wholesaler and no further instruction to escrow is needed now that's the money shot right there guys this clause is important because usually both parties have to agree on releasing a deposit which could be problematic I added this clause to my contracts after learning the hard way years ago when I had a cash buyer flake on a deal on the day of closing and then would not agree to allow escrow to release to me the $5,000 non-refundable deposit and it turned into a big fight this Clause makes it really easy to get the earnest money released to you and most importantly it communicates to your cash buyer to not play games and to take you and your deal seriously and if you didn't know both my purchase and sale contract and my assignment contract our tools included with my wholesaling the house-flipping system called flipster if you've never heard of flipster it's an all-inclusive cloud-based deal management system to help you manage streamline and automate all of the steps to wholesaling and flipping houses and what's cool about my contracts is you fill them out digitally and then send them to sellers and buyers for electronic signatures so paperless which I absolutely love to learn more and see them action just go to get flipster komm hey thanks for joining on this video I hope you start using this technique right away sure someone hit that like button right now and leave a comment share with me your biggest takeaway from this video I'd love to hear from you and if you haven't yet be sure to subscribe to my channel I'm dedicated helping you make more money and less time wholesaling the flipping houses so you can live your dream life and be sure to watch this next video where I explain in detail the steps to follow after you get a contract with a motivated seller now you're gonna love the detailed step-by-step breakdown watch it now and I'll see you on the next video